No point in working when there isn’t any actual return. Well the I-T dept has taken this policy a bit too much to heart. The Business Standard reported, a senior central board of direct Taxes official’s confirmation that the scrutiny of salaried class increases their workload without giving any substantial benefit, so selective cases will be picked up only if there is a convincing information of tax evasion and big investments by any salaried tax payer is available. This decision has been put into action to reduce the workload of the officials.
The dept already is burdened with huge information from annual information returns (AIRs) on high value transaction, plus it also has to deal with other sources such as the Central Information Branch (CIB).
The CBDT had already exempted salaried class with taxable income of up to Rs 5 lac (Rs 5, 00,000) from filing return this year and had earlier stated, reprieve for salaried class and pensioners with an annual income of less than Rs 10 lac (Rs 10, 00,000).
These decisions leads to an escape of about 15-17.5 million tax payer from the regular scrutiny process out of the total 34 million in the tax net. CBDT’s main focus is to use information on high-value transactions to curb tax evasion. In fact pieces of information uploaded by the CIB have increased from 44.5 million in 2009-10 to 145.70 million in 2010-11.
In the same way the department received 6,462 AIRs in 2010-2011, which had details of 4.38 million of high value transaction where funds are circulated.
Recently at a conference the chief commissioners and director general of income tax pointed out that the department had been successful in collecting a large volume of data, the payoff in terms of verification of transactions and detection of tax evasion had been below the expected value.
Source: http://www.rediff.com/business
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